Impairment Risk for Acquisition-Related Goodwill and Other Assets
First written in FY2016. 8 of 17 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2026.
Recruit Holdings moved to the "Worse" side of this theme in 2017, 7 years before the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
32 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「There were no material impairment losses on goodwill or intangible assets in the previous consolidated fiscal year or the current consolidated fiscal year.」
Although impairment losses were recognized overall, it disclosed that there were no material impairment losses on goodwill or intangible assets for the fiscal years ended March 2025 and March 2026. - FY2024MaterialisedAnnual report
「The consolidated fiscal year includes an impairment loss of ¥16.057 billion on right-of-use assets and property, plant and equipment associated with the integration of offices in the HR Technology business, an impairment loss of ¥13.213 billion on software and other assets resulting from lower profitability at certain cash-generating units in the Matching & Solutions business, and an impairment loss of ¥7.596 billion on goodwill resulting from lower profitability at certain cash-generating units in the staffing business, among others.」
The asset impairment risk materialized again in FY2024, with total impairment losses of ¥37.592 billion, including ¥7.596 billion of goodwill impairment in the staffing business. - FY2024-Q3MaterialisedAnnual report
「Operating income for the third quarter increased 12.5% to ¥108.9 billion, despite the recognition of a ¥7.5 billion impairment loss on goodwill in the staffing business, due to the continued implementation of cost controls.」
The impairment risk related to acquisition-related goodwill and other assets actually materialized in the third quarter, with a ¥7.5 billion impairment loss on goodwill recognized in the staffing business. - FY2023MaterialisedAnnual report
「The principal impairment losses on goodwill and intangible assets during the consolidated fiscal year were ¥13.902 billion on right-of-use assets and property, plant and equipment associated with the integration of offices in the HR Technology business, ¥9.374 billion on software and other assets in the Matching & Solutions business, and ¥4.419 billion on goodwill in the staffing business, among others.」
The asset impairment risk continued to materialize, with impairment losses totaling ¥31.073 billion recognized in the consolidated fiscal year, including goodwill and intangible assets. In the staffing business, an impairment loss of ¥4.419 billion on goodwill was recognized. - FY2020MaterialisedAnnual report
「The breakdown of impairment losses on goodwill by cash-generating unit or group of cash-generating units for the consolidated fiscal year is as follows.」
An impairment loss on goodwill of ¥26.310 billion was recognized during the fiscal year, including ¥14.533 billion related to Treatwell and ¥7.831 billion related to Chandler Macleod. - FY2020-Q1RestatedAnnual report
「During the first quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
It states that there have been no material changes to the impairment risk related to goodwill and other assets arising from acquisitions. - FY2019RestatedAnnual report
「Our Group recognizes goodwill arising from acquisitions conducted in Japan and overseas as an asset on the consolidated statement of financial position. If it is determined that the expected results cannot be achieved due to changes in the business environment, competitive conditions or other factors, an impairment loss may be recognized for the goodwill concerned.」
The goodwill impairment risk is reiterated. Although an impairment loss of ¥4.120 billion was recognized during the fiscal year, the impairment loss on goodwill was ¥0, and the entire amount is not identified as goodwill impairment. - FY2019-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
It states that there have been no material changes to the impairment risk related to goodwill and other assets arising from acquisitions. - FY2018MaterialisedAnnual report
「Impairment loss: ¥2.250 billion」
An impairment loss of ¥2.250 billion was recognized in the consolidated fiscal year. The notes to the consolidated financial statements show a ¥589 million decrease in the carrying amount of goodwill, indicating that the impairment risk associated with acquisition-related assets also materialized as a loss during the fiscal year. - FY2018-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
It states that there have been no material changes in the nine-month period to the impairment risk related to goodwill and other assets arising from acquisitions. - FY2018-Q2MaterialisedAnnual report
「As a result of impairment testing conducted on the transition date, the recoverable amount of goodwill fell below its carrying amount. The carrying amount of the goodwill was therefore reduced to its recoverable amount, and an impairment loss of ¥33.055 billion was recognized. Of the goodwill for which impairment losses were recognized, the material portion related to the cash-generating unit associated with Quandoo GmbH, for which an impairment loss of ¥22.858 billion was recognized for the entire amount of the goodwill.」
It disclosed that an impairment loss of ¥33.055 billion on goodwill was recognized on the IFRS transition date, including ¥22.858 billion related to Quandoo GmbH. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It states that there have been no material changes to the impairment risk related to goodwill and other assets arising from acquisitions. - FY2017MaterialisedAnnual report
「Impairment loss: ¥5.085 billion」
An impairment loss of ¥5.085 billion was recognized in the consolidated fiscal year, meaning that the impairment risk associated with fixed assets, including acquisition-related assets, materialized as a loss. - FY2017-Q3MaterialisedAnnual report
「Impairment loss: ¥2.236 billion」
An impairment loss of ¥2.236 billion was recognized in the nine-month consolidated period. This demonstrates that losses related to the impairment risk of fixed assets and acquisition-related assets had occurred. The breakdown of the amount is not specified in the main text. - FY2017-Q2RestatedAnnual report
「Under International Financial Reporting Standards (IFRS), unlike the accounting standards generally accepted as fair and appropriate in Japan currently adopted by our Company (hereinafter, “J-GAAP”), goodwill is not amortized, but the impairment testing methodology differs. Accordingly, compared with J-GAAP, impairment losses may be recognized earlier and the amount recognized at one time may be substantial.」
The possibility that the voluntary adoption of IFRS could result in impairment losses on acquisition-related goodwill being recognized earlier and in larger amounts has been further detailed. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It states that there have been no material changes to the impairment risk related to goodwill and other assets arising from acquisitions. - FY2016First statedAnnual report
「If it is determined that the expected results cannot be achieved due to changes in the business environment, competitive conditions or other factors, an impairment loss may be recognized for the goodwill concerned.」
An impairment loss of ¥857 million was actually recognized during the fiscal year, quantifying the impairment risk associated with acquisition-related assets.